Faraday Future, the struggling electric vehicle startup, has announced significant salary increases and bonuses for its CEO and founder despite the company’s lackluster performance and ongoing financial struggles. The company has only delivered 13 EVs in a decade.
TechCrunch reports that Faraday Future has decided to reward its top executives with substantial pay raises and bonuses, even as the company faces severe financial challenges and has managed to deliver only 13 cars in its decade-long history. The decision, revealed in a regulatory filing on Wednesday, has raised eyebrows given the company’s recent layoffs and furloughs affecting the majority of its workforce.
According to the filing, CEO Matthias Aydt will see his salary jump from $400,000 to $700,000, along with a “one-time recognition bonus” of $500,000, an “annual discretionary target bonus” of $700,000, and two annual stock grants worth over $4 million. Similarly, founder Jia Yueting’s salary will increase from $450,000 to $680,000, accompanied by a $500,000 recognition bonus, an annual discretionary target bonus of $816,000, and two annual stock grants also exceeding $4 million in value.
The timing of these generous compensation packages is particularly striking, considering Faraday Future’s ongoing financial woes. The company ended the second quarter with a mere $793,000 in unrestricted cash and recently announced $22.5 million in new financing commitments through convertible notes and warrants. This comes after the company laid off or furloughed hundreds of employees and nearly faced eviction from its Los Angeles headquarters in February 2024.
Faraday Future’s past is also marred by controversy, with the company facing accusations of faking some of its limited sales in a pair of whistleblower lawsuits. Although the company has disputed these claims, it has acknowledged in regulatory filings that a third employee has come forward with similar allegations. Additionally, the company remains under active investigation by the Securities and Exchange Commission, which has issued two more subpoenas in the first half of this year.
The raises and bonuses for Aydt and Jia are subject to certain conditions. Initially, they will receive prorated base salaries of $550,000 and $612,000, respectively, and must agree to spend at least $340,000 of that money on purchasing company shares. The remainder of their raises will only be granted if and when the company restores the full salaries of all other employees, who have also been working at reduced wages. The one-time bonuses will be paid out in installments, with 25 percent disbursed on September 30, another 25 percent on October 31, and the rest on the earlier of September 30, 2025, or the completion of a funding round exceeding $30 million.
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
